Bestore(SH:603719) Chang Jiang Shang Bao·2025-11-09 23:31Core Viewpoint - The leisure snack industry is undergoing significant changes, putting the company, Liangpinpuzi, in a difficult position as it faces declining revenues and profits due to increased competition from low-cost snack models [1][2][4]. Financial Performance - In the first three quarters of 2025, Liangpinpuzi reported revenue of approximately 4.1 billion yuan, a year-on-year decline of about 24%, and a net profit loss of 122 million yuan, marking a significant downturn [4][5]. - The company's revenue and net profit have been consistently declining since 2023, with revenues of 5.999 billion yuan and 5.480 billion yuan in the first three quarters of 2023 and 2024, respectively, reflecting declines of 14.33% and 8.66% [4][5]. - The net profit for 2024 was -46 million yuan, indicating the first annual loss for the company [5][6]. Market Dynamics - The rise of low-cost snack models has created intense competition, significantly impacting traditional high-end snack brands like Liangpinpuzi [2][9]. - The leisure snack market in China is over one trillion yuan, characterized by fragmentation and intense price competition [9]. Strategic Adjustments - Liangpinpuzi has attempted to adapt by reducing prices and entering the low-cost snack market, but these efforts have yielded limited results [3][10]. - The company has optimized its offline store strategy, leading to a reduction in store numbers and a corresponding decrease in sales [6][10]. Future Outlook - The company faces a critical juncture, needing to decide whether to continue its high-end strategy or pivot to compete in the low-cost segment, which could undermine its established brand positioning [11][12].